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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link

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NEW YORK (

TheStreet

)

-- Marin Software

(NYSE:

MRIN

) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

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Highlights from the ratings report include:

  • Net operating cash flow has decreased to -$7.31 million or 18.07% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Compared to other companies in the Internet Software & Services industry and the overall market, MARIN SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • MRIN has underperformed the S&P 500 Index, declining 22.87% from its price level of one year ago.
  • The gross profit margin for MARIN SOFTWARE INC is currently very high, coming in at 71.12%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -36.40% is in-line with the industry average.
  • MRIN's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 6.94, which clearly demonstrates the ability to cover short-term cash needs.

Marin Software Incorporated operates a cloud-based digital advertising management platform. The company's Revenue Acquisition Management platform offers integrated digital advertising management solutions for search, display, social media, and mobile advertising channels. Marin Software has a market cap of $301.2 million and is part of the technology sector and computer software & services industry. Shares are down 11.6% year to date as of the close of trading on Wednesday.

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